HOUSTON--(BUSINESS WIRE)--Abundant, affordable domestic natural gas resources have provided the
U.S. petrochemical industry with a substantial competitive advantage, a
senior ExxonMobil Chemical Company executive said last week.

In a presentation at the Shale Petrochemical Manufacturing Summit at
Philadelphia’s HUB Cira Centre, Lynne Lachenmyer, senior vice president,
ExxonMobil Chemical Company, said that increased natural gas production
is revitalizing the U.S. petrochemical industry.

“The ability to tap into vast shale resources right here in the U.S. is
an opportunity that we have to develop. We are in the middle of an
industry in transformation,” she said. Relatively low natural gas prices
are providing U.S.-based chemical manufacturers with an advantage over
competitors in other countries that rely on more expensive feedstocks
and energy for their operations.

Lachenmyer said, “Natural gas from resources such as the Marcellus shale
in Pennsylvania presents a unique opportunity to revitalize the U.S.
economy, and the petrochemical industry is part of that. It is an
opportunity to grow our economy, create new jobs, and capture early
mover advantage to increase U.S. manufacturing competitiveness.”

Shale gas and associated liquids produced throughout the country can
support all the major chemical-producing regions, including the U.S.
Gulf Coast, which today serves as a major hub of production of key
chemical building blocks, such as ethylene.

“Looking back a couple of decades, chemicals were among our nation’s top
exports,” Lachenmyer said. “But the situation changed and we were on the
verge of becoming a net importer. Now the industry is back on the path
of competitively serving the growth markets of Asia and other locations
through exports.”

With the additional lower-cost ethane available in North America,
relative to naphtha and other liquid feeds, steam crackers in North
America are running these lighter feed slates to produce ethylene at a
significant cost advantage, Lachenmyer said.

“In the last decade, new integrated refining-chemical complexes,
principally in Asia or the Middle East, have tapped into labor and
logistical advantages,” she noted. “Today unconventional gas growth in
North America is providing the next major source of advantage via
affordable energy and feedstock from natural gas and ethane. For the
first time in a decade, producers in North America have announced
expansions in the form of debottlenecks and new steam crackers.”

ExxonMobil Chemical has filed permit applications for a petrochemical
expansion at its Baytown Olefins Plant in Texas where it plans to add an
ethane cracker. The company also plans to add premium polyethylene
facilities at the nearby Mont Belvieu Plastics Plant. It will make a
final investment decision following completion of these reviews and
approvals.

If developed, it is estimated that the project would create about 10,000
construction jobs and about 350 permanent jobs would be added to the
company’s workforce of 6,500 the Baytown area. The proposed project
would also have a multiplier effect and create an additional 3,700 jobs
in the local community.

“The proposed investment reflects ExxonMobil’s continued confidence in
the natural-gas driven revitalization of the U.S. chemical industry,”
Lachenmyer said. “The natural gas revolution in the U.S., driven by
industry innovation, is enabling U.S. chemical manufacturers such as
ExxonMobil to invest in North America, create thousands of U.S. jobs and
increase sales to domestic and global markets.”

About ExxonMobil Chemical

ExxonMobil Chemical is one of the world’s premier petrochemical
companies with manufacturing, technology, and marketing operations
around the world. The company delivers a broad portfolio of products and
solutions efficiently and responsibly, with a commitment to create
outstanding customer and shareholder value. ExxonMobil Chemical endorses
the principles of sustainable development, including the need to balance
economic growth, social development and environmental considerations.